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.the money in the Water Fund superior to all other charges of any kind
or nature except the necessary costs of maintenance and operation of the
System, and equal in rank to the charges upon the money in the hater Fund
required to pay and secure the payment of the principal of and interest
on the Outstanding Parity Bonds and to any charges which may be made
later on the money in such Fund to pay and secure the payment of the
principal of and interest on any Future Parity Bonds.
In the event that money and/or direct obligations of the United
States of America maturing at such time or times and bearing interest to
be earned thereon in amounts (together with such money if necessary)
sufficient to redeem and retire the Bonds in accordance with their terms
are set aside in the 1967 Bond Redemption Fund to effect such redemption
or retirement, and such money and the principal of and interest on such
obligations are irrevocably set aside and pledged for such purpose, then
no further payments need be made into the 1967 Bond Redemption Fund for
the payment of the principal of and interest on the Bonds, and the Bonds
and the appurtenant coupons shall cease to be entitled to any lien,
benefit or security of this ordinance except the right to receive the
funds so set aside and pledged, and the Bonds and such coupons shall be
deemed not to be outstanding hereunder.
Section 12. A Reserve Account is hereby created in the 1967.
Bond Redemption Fund for the purpose of securing the payment of the prin-
cipal of and interest on the Bonds. The City hereby covenants and agrees
that by January 1, 1972 it will pay into the Reserve Account, by peri-
odic equal payments which shall be made at least annually, a sum equal
to the average annual amount required for debt service on the Bonds.
In the event the Bonds outstanding are ever refunded, the
money set aside in the Reserve Account to secure the payment thereof
may be used to retire Bonds or may be transferred to any other reserve
account which may be created to secure the payment of any bonds issued
to refund the Bonds.
In the event the money in the 1967 Bond Redemption Fund, over
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